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A TMX Group sign, the company that runs the Toronto Stock Exchange (TSX), is seen in Toronto, June 23, 2014.
A TMX Group sign, the company that runs the Toronto Stock Exchange (TSX), is seen in Toronto, June 23, 2014.
(Mark Blinch/Reuters)

BMO: TSX is frothy, time to shift to U.S. markets

Bank of Montreal chief investment strategist Brian Belski released a five part warning to Canadian investors Friday titled, “Signs of TSX Froth.”

Mr. Belski lists low volatility, the highest TSX 12-month forward price to earnings ratios since 2000 (indicating analyst expectations for the coming year may be unrealistic), the dominance of energy stocks and the large number of share prices hitting 52-week highs as solid reasons to expect a pullback in the domestic benchmark’s performance.